Provide answer Riley Components recorded operating data for itselectronics division for the year.•. Sales = $920,000. Contribution margin = $180,000Total direct fixed costs = $110,000Average total operating assets = $500,000If management identifies a way to increase thecontribution margin by $40,000, assuming fixed costsremain constant, what will be the new ROI for theyear?

New contribution margin = Old contribution margin + Increase in contribution marginNew contribution…

Answered: Riley Components recorded operating…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blossom Company had the following operating data for the current year: sales, $460000; contribution margin, $100000; total fixed costs (controllable), $50000; and average total operating assets, $250000. If management is able to improve its contribution margin by $30000 and hold its fixed costs constant, what would Blossom's ROI be for the year? O 20%. O 32%. O 40%. O 17%.
Concord Corporation recorded operating data for its auto accessories division for the year. Sales Contribution margin Total direct fixed costs Average total operating assets $750000 12.0% 38.0% 56.0% 32.0% 250000 90000 500000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000, assuming fixed costs are held constant?
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Blue Spruce accumulates the following data for its North Division, an investment center, for the current year. Contribution margin Controllable fixed costs Average operating assets $186,000 $113,550 $700,000 Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).) ROI %
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What is the contribution margin ratio of this financial accounting question?
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The average operating assets and minimum required rate of return of each segment are as follows: Segment Average operating assets (in thousands) Required rate of return Pastry 2,500,000 15% Fruit Juices and Desserts 1,270,000 12% Compute, analyze, and discuss with top management: How much is the ROI and residual income of each segment? How would you compare each segment's performance based on ROI and residual income? What actions would you recommend to improve or maintain each segment's. ROI and residual income? Fast Food 890,000 3%
• Calculate the revenue needed to earn a target operating income of $102,000. • If fixed costs increase by $19,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement 1? • The general manager at Lifețime Escapes proposes to increase the price of the package tour to $8,200 to decrease the breakeven point in units. Using information in the original problem, calculate the new breakeven point in units. What factors should the general manager consider before deciding to increase the price of the package tour?
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answer
3. The management of Lambda Corporation has received the following forecast for the next year. Sales revenue $600,000Fixed costs $275,000Variable costs 270,000Total costs 545,000Net income $ 55,000 Capacity is a sales volume of $800,000.a. Computei. the contribution margin ii.the contribution rate. b. Compute the break-even pointi. in dollars; ii. as a percent of capacity. c. Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.
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